PORTLAND – Scotia Prince’s operators on Wednesday blamed city officials for the cancellation of ferry service between Portland and Yarmouth, Nova Scotia, saying the city failed to eliminate mold problems in its international passenger terminal.

The city responded by severing its 35-year relationship with the Scotia Prince. City Manager Joe Gray criticized Scotia Prince officials for forcing the city to make expensive repairs while having no intention of setting sail this summer.

City officials acknowledged it could take months to find another ferry operator. Ferry service between Bar Harbor and Nova Scotia won’t be affected.

Mark Hudson of Scotia Prince Cruises said the city failed to remediate the mold problem that sickened workers at the city-owned International Marine Terminal. He also said nothing has been done to stop leaks that allowed toxic mold to grow.

“As much as it is a hard decision, because who knows what’s going to happen to our business, it’s a simple decision to make,” Hudson said from his office in Ontario. “We cannot and will not risk the health of our employees.”

Scotia Prince Cruises had notified employees when it issued a statement accusing the city of failing to take the problem seriously.

The company has 250 full- and part-time employees during the height of the summer season, but the impact of its decision goes beyond the workers. The Scotia Prince, which carried about 140,000 passengers last year, has a $53 million economic impact on Portland and an even bigger impact on Yarmouth, Nova Scotia, Hudson said.

The 485-foot ferry saw its business decline last season, but Hudson insisted the company had every intention of resuming service this spring.

Problems with the International Marine Terminal came to light last August when mold was discovered and the company pulled its employees and began processing passengers in a tent outside. Federal workers were later removed as well.

Fourteen employees who suffered health problems have given notice that they intend to sue. Those workers suffered problems including disabling fatigue, chronic headaches and memory loss, said Dr. Ritchie Shoemaker, an expert from Maryland.

Shoemaker was paid by Scotia Prince Cruises to treat and evaluate the 14 workers. He also examined three federal employees who worked in the building.

All told, $1.2 million was spent to remediate the mold problems. The building’s frame was treated, new mold-proof drywall was installed and the entire first floor and two restrooms were gutted, said Jeffrey Monroe, the city’s waterfront director.

The city also tore down a warehouse and replaced it with a new one and created 5,000 square feet of modular office space, officials said.

Gray said the new space was inspected last Friday and Scotia Prince officials never gave any inkling that the season might be canceled.

“Whatever the reasons for that decision, the city does not believe they are attributable to mold at the International Marine Terminal, and there is no basis for canceling a season when the city has met its lease obligations,” Gray said.

Gray said the city would seek out another ferry operator to use the International Marine Terminal, which was built in 1909 and is due to be replaced by a new “Ocean Gateway” terminal serving both ferries and visiting cruise ships.

In the past, Bay Ferries Ltd., which operates The Cat high-speed ferry between Bar Harbor and Nova Scotia, had expressed an interest in expanding service to Portland, but it was barred from doing so by Portland’s decades-old deal with Scotia Prince.

Gray said Wednesday that the city would consider proposals from any company, including Bay Ferries, that wanted to resume ferry service to Nova Scotia.